JUST like the AMAP for personal vehicles, the AER is advisory. However, the AER is a flat rate, which some industry experts believe isn’t fit for purpose. The variation in employee home energy tariffs is too broad for one pence-per-mile rate to cover, leaving the majority of employees charging their company-owned EVs at home out of pocket.

As for the AMAP rates, the AER is assessed every three months, currently the AER is 9p per mile.

There are many SME firms that don’t have a company car policy but ask employees to use their own private car for business use.

Using AMAPs, you may reimburse a member of staff who has used their private car on business and the employee is not liable for tax on it.

AMAPs can also be used if you run your small business as a limited company but use your private car for business.

The statutory mileage AMAP rates are the same for all cars, irrespective of engine size. For smaller cars, they are quite generous. But they may not cover the costs for larger vehicles. On the other hand, for electric vehicles they are fantastically good news.

AMAPs are higher for the first 10,000 miles per year to reflect standing annual costs of motoring, such as Vehicle Excise Duty, business use insurance and depreciation for extra wear and tear.

For every subsequent mile, the mileage rate is lower. This is also to discourage unnecessary business mileage, which is another part of the government’s drive to reduce CO2 emissions.